Latest revision as of 22:23, 28 March 2012

CREDIT COUNSELING SERVICE

A professional nonprofit credit counselor can help consumers manage and reduce their debt. The Consumer Credit Counseling Service (CCCS) has 450 offices nationwide offering personal financial counseling, credit, and debt management counseling. CCCS also assists consumers in removing fraudulent claims from a credit report, and acts as a liaison between creditors and consumers to establish repayment schedules.

A for profit "Credit Service Organization" (CSO) must:

File a registration application with, and receive a certificate of registration from, the Attorney General's Office before doing business in California. (Civil Code § 1789.25.)

Obtain a $100,000 surety bond from an admitted surety in favor of the State of California for the benefit of any person damaged by any violation of the Act. (Civil Code § 1789.18.) (The bond must be maintained for two years after the CSO stops doing business in California.)

Give the buyer before the contract for services is signed, an information statement that complies with Civil Code Section 1789.15. (Civil Code §§ 1789.14, 1789.15.)

Not provide any service to a buyer except pursuant to a written contract that complies with Civil Code Section 1789.16. (Civil Code § 1789.16.)

Complete the agreed services within six months after the date the buyer signs the contract for services. (Civil Code § 1789.13(b); see Civil Code § 1789.16 (a)(3).)

Maintain an agent for service of process in this state. (Civil Code § 1789.13(j).)

A "Debt" or "Credit" Counselor is certified through the National Foundation for Credit Counseling (NFCC). A college degree or equivalent experience in finance, banking, credit, home economics, or counseling is desired. Debt Counselors are not licensed by a state agency in California but may need a business license to operate. A Debt or Credit Counselor does not provide credit and is not a lending institution.